The Lost Legitimacy: Property, Business Power and the Constitution

After nearly a quarter of a century of business friendly government in Britain, the business community nevertheless finds itself more unpopular than for three decades and is increasingly beset by demands for regulation. The sources of its problems lie in the regulatory structures historically created for the business community. These structures have been unable to cope with regulation in the world of large-scale privatization, global economic competition and the demands of democratic politics for public accountability. Business is therefore struggling to create new sources of legitimacy.     

Development from below: Neighborhood improvement associations in the Latin American squatter settlements

Juntas, a type of neighborhood association found in many Latin American countries, are described in terms of their common characteristics, functions, and strategies. Factors which strengthen juntas are isolated, and the potential for juntas to become ongoing institutionalized structures is discussed. Information from a large number of written sources was compared in order to identify the common cross cultural characteristics of juntas. Juntas generally originate as squatter invasion forces organized to take over and settle, either gradually or overnight, unocupied lands in or near urban centers. After invasion the huntas continue to function as neighborhood associations which make collective demands on the government for public services and which promote various self-help projects within the squatter community. Juntas are widespread in Latin American countries. Of the 91 squatter settlements which have been studied in 11 different countries, 61 has juntas. Participation of household heads in the juntas ranges from 10-70%. Most squatter invasions are planned or spontaneous radical political action. The collective invasion itself often serves to open negotiations with the government. After the invasion leaders are elected, and they help organize the new community by assigning land, setting boundries, screening new settlers, collecting dues, and directing a variety of self-help construction projects. Collective demands are then made on the government to provide urban services such as water and electricity. The collective nature of the demand helps reduce the risk of official retaliation. Demand strategies include petitioning high level government officials, utilizing personalistic contacts, affiliating with either the rulingpower or opposing parties, appealing to outside agencies, linking up with other juntas, conducting public demonstrations, and publicizing their grievances in order to engender public support. After basic services are provided the juntas promote self-help projects such as organizing taxi services, medical clinics, vocational and lteracy programs, and building playgrounds. The juntas sometimes perform quasi governmental functions, such as, settling disputes between community members and policing the community. Participation in juntas declines as the need for making outside demands lessens; however, the high level of self-help activity keeps the juntas viable. They also retain the latent capacity for political demand behavior if the need for action arises. Factors which strengthen juntas included 1) high population density and large size of the squatter community, 2) defined boundaries, 3) close proximity to urban agencies, 4) climatic factors which make it necessary to act quickly and collectively, and 5) a moderate level of heterogeneity in the squatter population.     

Regulation Inside Government: Public Interest Justifications and Regulatory Failures

Regulation is normally thought of as government regulation of the private sector, particularly business. However, there is a developing literature on regulation inside government, exploring the ways in which government regulates itself through a range of bodies which set standards for public sector organizations, monitor them and seek to bring about compliance with those standards. Reading across economic theories of business regulation to regulation inside government, this article suggests that the current wave of reform inside the UK public sector implicitly reflects a public interest view of regulation. However, the analogous public interest justification for the regulation of business has been heavily criticized and regulatory failures have been suggested including regulation in the interest of regulated bodies, regulation in the interest of regulators and the high costs of operating regulatory systems.     

The politics of government‐business relations in Myanmar 1

All post‐colonial Myanmar governments and the business community benefited from their clientelistic networks. Without the help of government officials, many business firms would have gone under quickly; at the same time, without the assistance of business people, it would have been hard for most post‐colonial Myanmar governments to keep themselves in power. It is very clear that government‐business relations cannot simply be reduced to a zero‐sum game. This article clearly shows that if we assemble cases of government‐society relations in Myanmar in the way we solve a jigsaw puzzle, the picture that emerges is not simply a zero‐sum situation. Rather, certain interactions between incumbent governments and the business community in post‐colonial Myanmar were mutually empowering.     

MANAGING EUROPE FROM AN IRISH PERSPECTIVE: CRITICAL JUNCTURES AND THE INCREASING FORMALIZATION OF THE CORE EXECUTIVE IN IRELAND

This article analyses the management of European Union (EU) business by the Irish core executive. More specifically, it investigates the demands placed by EU membership on the Irish system of public administration and how the system has responded to these demands. Employing an institutionalist analytical framework, the article maps the formal and informal organizational and procedural devices or structures used to manage EU affairs in Ireland, as well as dissecting the key relationships that govern this management process and the role of the domestic agents actively involved in the EU’s governance structure, the cadre or boundary managers. The article also explores in a dynamic way the development of the capacity for the management of EU affairs in Ireland over time. Using the concepts of path dependence and critical junctures, we illuminate how key system‐management decisions became locked‐in over time and we isolate the triggers for significant adaptational change, be they domestic or external. Adaptation to EU business in Ireland was path‐dependent and consisted of gradual incremental adjustment. This system of flexible adaptation generally served Ireland well as the EU’s policy regime expanded and evolved, but in response to the shock rejection of the Nice Treaty by the electorate in 2001, significant formalization of the Irish system occurred with the establishment of new processes and rules for managing relations between the core executive and the EU.     

Crony capitalism in the Palestinian Authority: a deal among friends

Abstract

This article interrogates the multifaceted political–economic networks entrenched within the multiple structures of the West Bank-based Palestinian Authority (PA). The main argument of this article is that crony capitalism is a defining feature of the PA’s relations with a handful of capitalists and business groups. The demonstration of this argument is exhibited through the large-scale public and private monopolistic practices in strategic sectors of the Palestinian economy, which function within the framework of Israel’s settler-colonial reality and the persistent patterns of international aid to the occupied West Bank. While acknowledging the existence of cronyism as a feature of the capitalist system in its diverse typologies, crony capitalism may be more pronounced in situations characterised by political uncertainty, whereby political–business collusion strategizes the expansion of neo-patrimonial networks and rent-seeking opportunities as a meta-mechanism for social control and political stabilisation. In the Occupied Palestinian Territories, crony capitalism was developed as part of the political allegiances and economic alliances that underpin the structures created by the Oslo process, which are fostered by Israeli policies and the international donor community to maintain the cohesiveness of the PA regime.     

How South African Citizens Evaluate Their Economic Obligations to the State

This article explores the relationship between feelings about political community and citizen evaluations of the state's demands for taxation. It finds preliminary support for the hypothesis that to the extent that individuals identify themselves with the state-sponsored view of the nation, they will perceive the allocation of costs and benefits to be more 'fair', and will be more inclined to comply with demands for taxation. This conclusion is based upon analysis of a 1997 dataset resulting from a national survey of adult South Africans, a society characterized by a great diversity of feelings about political community, and other socio-economic factors.     

Institutionalizing Participation and Governance? New Participative Structures in Local Government in Ireland

Public service providers and elected levels of government around the world are continually being encouraged to involve citizens in decision-making. Various means of achieving this have been employed by local authorities in different countries. These include local referenda, customer surveys, online discussion forums and citizens' juries. This article draws on the example of new participative committee structures within Irish local government. These seek to involve identified stakeholders (including business, trade unions, the community/voluntary sector and environmental interests) in local government decision-making. These structures were inspired both by international trends towards participatory democracy and Ireland's experience of neo-corporatist 'social partnership' at the national level. This article considers the new committee structures and their composition and examines some of the problems encountered. It demonstrates that recent research into these new structures supports many of the concerns that have been raised in the literature on varying participative mechanisms practiced in other countries.     

Community Council Cooperation: The Lake Macquarie City Council Co-Governance Delegation Model

In its Better, Stronger Local Government, the Independent Local Government Review Panel (2012a, 2012b) advanced several claims regarding the performance of New South Wales (NSW) local government, including the supposed need for additional “sub-council” governance structures. This article argues that there is no need to “reinvent the wheel” in NSW local government by introducing additional “sub-council” structures since existing regulation already enables local authorities to engage in local co-governance. Using the example of the Lake Macquarie City Council (“LakeMac”) “delegation model,” the article shows that LakeMac has been successful in its endeavors to engage widespread community participation in co-governance to manage council facilities.     

PRESENTATIONAL MANAGEMENT AND THE PURSUIT OF REGULATORY LEGITIMACY: A COMPARATIVE STUDY OF COMPETITION AND CONSUMER AGENCIES IN THE UNITED KINGDOM AND AUSTRALIA

Independent regulatory agencies, faced with multiple and often conflicting demands from regulatory stakeholders, yet operating at arm's length from government, may be under considerable pressure to demonstrate the legitimacy of their decisions and the regime they administer. This article considers how regulators employ presentational strategies to establish and maintain their legitimacy by documenting the findings of a comparative study of two independent agencies responsible for the regulation of trade practices in their respective jurisdictions: the UK Office of Fair Trading and the Australian Competition and Consumer Commission. Its findings demonstrate that presentational activities may be an important means by which regulators give concrete expression to their obligations of transparency, promote the effectiveness of the regime they administer, and publicly demonstrate how their work serves the community. The mass media is relied upon by both agencies as the primary vehicle through which they seek to communicate to their targeted audiences and the public at large, actively seeking to manage the ambivalence that infuses the regulatory enterprise.     

Ethnic Group Identity and the Roma Social Movement: Transnational Organizing Structures of Representation

This paper examines the relationship between European integration and ethnonational demands with the example of selected regions in the European Union (EU). It follows the theoretical premises of new regionalism and explores the ways in which ethnonational groups use the opportunities and resources of European governance to express their identities, material interests, and political demands. Methodologically, it conducts a plausibility probe of the potential effects of European integration on ethnonationalism by testing for regional differences in identities, interests, and political attitudes. The case studies are drawn from the UK (Wales and Scotland), Belgium (Flanders), Austria (Carinthia and Burgenland), Romania (Northwest and Center regions), and Bulgaria (South-Central and South-Eastern regions) as a representative selection of regional interests in the EU. The paper finds that European integration affects ethnonational groups by reinforcing identity construction in the direction of inclusiveness and diversity. Although regional actors are more supportive of the EU than the European publics in general, they also seek access to representation in the authority structures of the state. Based on these findings, the paper concludes that European integration facilitates a growing public acceptance of its resources, in parallel with persisting allegiances to the nation-state, the community, and ethnoregional distinctiveness.     

Before and after Dayton: The UN and NATO in the former Yugoslavia

Business managers name Africa's political instability as a key obstacle to economic development, but many companies continue to invest in Africa. The article explains this apparent contradiction by looking at the case of Shell in Nigeria. Nigeria experiences serious political instability, yet Shell is expanding its investment in the country. This article deals with sources of firm-specific political instability that have affected Shell in Nigeria in the past and attempts to explain why a specific corporation such as Shell may want to make investments in the country despite political instability. The examination of three different angles of Shell's activity, which forms the core of this paper, reveals that political instability does not hinder Shell from operating in Nigeria. Firstly, the international perspective illuminates in what way Nigeria may be more attractive to Shell than other countries. Profits in Nigeria appear to be higher than elsewhere, while Shell occupies a dominant market position unrivalled in most other countries. Secondly, the structural perspective illuminates the interconnectedness of Shell with state structures in Nigeria that may tie the company to Nigeria. Shell established a first mover advantage in the 1950s, since Nigeria was a British colony until 1960 and British oil companies were given preferential treatment. After independence, Shell managed to penetrate state structures which helped to hedge political risk in the country. Thirdly, the strategic perspective explores how Shell's strategic approaches may make political instability less significant to Shell. This article concludes that Shell has adopted to political instability. The conclusion that political instability can be conducive to business is significant since one expects political instability to be inherently harmful to business.     

Community resilience: a policy tool for local government?

In many countries, local government has been a prime target of austerity measures. In response, local authorities are exploring a new repertoire of policy approaches in a bid to provide more with less. In England, local authorities have been drawn to community resilience as a pragmatic response to the challenge of deploying shrinking resources to support communities exposed to social and economic disruption. This application of resilience thinking is not without its challenges. It demands a working definition of community resilience that recognises the potential for communities to prove resilient to shocks and disruptions, but avoids blaming them for their predicament. There is also the practical challenge of developing and targeting interventions to promote and protect resilience. This paper sets out to explore these issues and establish the potential utility of community resilience as a policy tool through case study analysis in the city of Sheffield.     

Unveiling patterns of contestation over Better Regulation reforms in the European Union

Regulatory reforms labelled ‘Better Regulation’ are a prominent item on the political agendas of most advanced democracies and the European Union. Governments adopt Better Regulation measures to strengthen their democratic legitimacy and increase their regulatory and economic effectiveness. Notwithstanding their rhetorical appeal, their design and implementation are susceptible to high levels of political contestation. We therefore ask: are there systematic differences in stakeholders’ demands for what Better Regulation should achieve? What explains these differences? We argue that conflict over Better Regulation is rooted in what stakeholders prefer as a regulatory system of governance. Stakeholders demand reforms that lead to one of the following three scenarios: deregulation, technocratic or participatory policy‐making. We examine stakeholders’ demands expressed in the EU. We find that national authorities responsible for coordinating Better Regulation and cross‐sectoral business organizations support deregulatory and technocratic reforms. Business and public interest organizations are equally supportive of strengthening participatory policy‐making.     

Assessing Public Managers' Change-Oriented Behavior: Are Private Managers Caught in the Doldrums?

This article presents a concept and a measurement of managers' change-oriented behavior related to the initiation and implementation organizational change. It is argued that managers have an optimal potential for achieving organizational changes if they have the change-centered leadership style, are intuitive, recognize demands for change, and have power-motivated behavior. Public and private managers are significantly different in relation to change-oriented behavior based on data from 343 managers in two public organizations and one private. One result was unexpected: public managers are more change-oriented than managers in business organizations. As expected, there is no significant difference in change-oriented behavior among managers in public agencies. Possible explanations for these outcomes are presented.     

Japanese corporate groupings (keiretsu): A reconnaissance of implications for the future

Four trends presage a possibly somber scenario for the United States at the dawn of the 21st century. American business managers face growing shares of global markets held by foreign business, diminishing U.S. industrial capabilities, and pressure to compete in Japan for Japanese markets. And U.S. policymakers are experiencing operational difficulties, simultaneously influencing and influenced by U.S. industry performance. Thus, the U.S. political business system appears out of alignment with the emerging global competitive environment.

Many explanations and antidotes have been offered, each with its element of truth. The aim is not to deny them, rather it is to explore the significance of corporate grouping structures for Japanese and by implication world business. Long practiced habits of cooperation, mutually sustained competitive advantage, and interlocking ownership appear to be the major ingredients in the glue holding corporate groupings together.

If corporate groupings are as important as some Japanese scholars suggest then a new paradigm may be necessary for understanding their implications for the global political business environment. Thus, significant changes --in philosophies, perspectives, approaches and strategies-- may loom ahead for U.S. managers and policy makers who want to compete successfully in the 21st century.

Arguably, the most competitively potent and successful enterprises in the world are Japanese. Less visible, but of critical importance to this success, are inter-organizational support networks -- Japanese corporate groupings -- which bolster group members with capital, expertise and markets. This article is a reconnaissance for managers, scholars and policy makers detailing future implications of Japanese corporate grouping structures. The first and second sections establish four important trends and summarize popular and scholarly understandings of the corporate grouping phenomenon. If corporate groupings are as important as some Japanese scholars maintain, then perhaps we need a new paradigm which clearly identifies "strategic coupling" as a critical success factor in the new global political business environment. The third and final sections develop a framework for understanding some of the economic, institutional, organizational and strategic implications of Japanese corporate groupings.     

Dynamism and Enterprise

Abstract

The aim of this paper is to see how Asian female entrepreneurs in the United Kingdom have developed and to increase our understanding of this entrepreneurial minority. The study looks at some of the more successful Asian women who are prominent in the United Kingdom by being featured in the top 200 Asian rich list. Both primary and secondary sources were used to profile these women. Open ended face-to-face interviews were also conducted with Asian women from second/third generations who had some business ownership stake in the more traditional low value added, labour intensive businesses. Questions centred around why they started their business, the support they received, the challenges facing them specifically as Asian women in business both at start up and beyond, their aspirations for the future of the business and their motivations.

The findings show that the gap appears to have widened between the more successful Asian business woman and those women who are still opting for low value added, labour intensive firms. The practical implications of this study are that Asian women are an increasingly important part of the SME group and thus increasing the quality of business provision, advice, start up and growth would make this vital sector even more productive. This study will also help sensitise and inform business support agents, banks, advisors both public sector and private. Understanding the needs of this entrepreneurial minority is important for academic, policy makers and support professionals.     

When civil engagement is part of the problem: Flawed anti-corruptionism in Russia and Ukraine

In developing countries, the fight against corruption entails purges of political and business elites and the restructuring of electoral, financial, and social provision systems, all of which are costly for the incumbents and, therefore, unlikely without sustained pressure from civil society. In the absence of empirical analyses, scholars and practitioners have, therefore, assumes that civil society plays an unequivocally positive role in anti-corruptionism. In this article, we challenge this dominant assumption. Instead, we show that, under certain conditions, an engaged non-governmental community may, in fact, undermine the fight against corruption. Using the data from forty interviews with anti-corruption practitioners in Ukraine and Russia, as well as primary documentary sources, we present two models of anti-corruptionism whereby active civil engagement produces suboptimal outcomes. One is faux collaboration, defined as a façade of cooperation between the state and civil society, which hides the reality of one-sided reforms. The other model is that of non-collaborative co-presence, whereby the governance role is shared by the government and non-governmental activists without compromise-based solutions. In both cases, civil engagement helps perpetuate abuses of power and subvert such long-term goals of anti-corruption reforms as democratization and effective governance.     

Regulation of Government: Has it Increased,is it Increasing,Should it be Diminished?

This article examines arms-length 'regulation' of UK government – the public-sector analogy to regulation of business firms — and assesses the precepts for public-sector regulation embodied in the Blair Labour government's official vision of public-man-agement reform, its Modernising Government White Paper of 1999. As a background to assessing the recipes for public-sector regulation in Modernising Government, the article shows that such regulation grew markedly both in the two decades up to 1997 and in the plans and activities of the Blair government from 1997 to 1999. Against that background, the design principles for public-sector regulation contained in Modernising Government are assessed. The White Paper was notable for embracing a doctrine of 'enforced self-regulation' for the public sector that involved aspirations to both more and less public-sector regulation in the future. It put its faith in a mixture of oversight and mutuality for 'regulating regulation'. But in spite of the radical-sounding tone of Modernising Government, the measures proposed appeared limited and half-hearted, and two well-known institutional design principles for regulation seemed to be missing altogether from the Blair government's view of administrative 'modernity'.     

Politics of Risk-Taking: Welfare State Reform in Advanced Democracies,by Barbara Vis

This article considers the impacts on the public regulation of private business of three key transformations in public management: “towards more targeting of resources” (through more risk-based regulation); “towards a stronger service ethos” (through more customer-centricity); and “towards increased integration” (through more joined-up regulatory organization). Empirical evidence is presented from a program of research focusing on local authority regulation of the businesses sector in England and Wales. The article concludes by reflecting on how such transformations, which are of wide international significance, might be viewed, particularly from a public interest perspective.